AuthZed has secured $12M of Series A fundraising
authzed.com
authzed.com
Previously, you'd see a ton of companies able to raise massive amounts of capital and be left wondering how they could achieve the revenue to justify their valuation without VCs putting the squeeze on customers.
Excluding AI (which is quickly finding its own equilibrium), now the scenario described above is basically non-existent. IMO, Series A has returned to "normal"; it's the phase where companies with a proven business (product-market-fit) acquire funding so that they can build scale their business to more customers (go-to-market).
Because of this, your question about business model is now actually far more relevant to ask Seed-stage companies; they need a successful business model or else they won't be able to raise a Series A. Based on some of the deal-count data out of Carta, it's possible that Seeds are being over-funded now and that there could be a huge chasm obtaining additional funding[0].
As for authzed, I think the article does a great job at explaining our situation in the "Why Now" section:
>The reality is that as second-time founders, our approach to venture capital and company building is slightly different to most of the other companies out there. We want to make sure that we’re building a sustainable business, and that means that we’ve made two strategic decisions that have impacted the timeline and amount of our funding. First, we want to grow mostly out of our own revenue, only bringing in venture capital to accelerate something that’s already working, and make new big bets. Secondly, we’ve been very judicious with our hiring. The overwhelming pattern during the COVID ZIRP years was to over-hire, and then when the market forces shifted, to panic.
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>Where most companies might try to raise money when things aren’t working, at AuthZed we’re raising money because things are clearly working.
Even when the market was overzealous, we've been very measured with how we raise and spend capital because that's how we believe in building businesses. When ZIRP-era ended, we'd been operating as if hadn't existed the entire time. This positions us well because we have a working business model, a healthy open source community, the capital to expand, and a growing enterprise market to sell to[1].